Script from slides: Laudon/Laudon MIS, Chapter 06irina.stobbe.net/wiki/images/Laudon_mis12_ppt06_GE_ISt.pdf · 2 Script from slides: Laudon/Laudon MIS, Chapter 06 Folie 3 To what

1 Script from slides: Laudon/Laudon MIS, Chapter 06

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Management Information SystemsMANAGING THE DIGITAL FIRM, 12TH EDITION GLOBAL EDITION

FOUNDATIONS OF BUSINESSINTELLIGENCE: DATABASES ANDINFORMATION MANAGEMENT

Chapter 6

VIDEO CASES Case 1: Maruti Suzuki Business Intelligence and Enterprise Databases

http://www.marutisuzuki.com/ ; http://www.youtube.com/watch?v=aZWAzbRm-msCase 2: Data Warehousing at REI: Understanding the Customer

www.rei.com; wikipedia:REI ; http://www.youtube.com/watch?v=fUSEtLlwzNg

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• Describe how the problems of managing data resources in a traditional file environment are solved by a database management system

• Describe the capabilities and value of a database management system

• Apply important database design principles

• Evaluate tools and technologies for accessing information from databases to improve business performance and decision making

• Assess the role of information policy, data administration, and data quality assurance in the management of a firm’s data resources

Learning Objectives

CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:DATABASES AND INFORMATION MANAGEMENT

© Pearson Education 20122

This chapter discusses the role of databases for managing a firm’s data and providing the

foundation for business intelligence. Ask students to describe any databases they have

encountered or used at work or in their personal use on the Web. For example, Google and

Amazon are database driven web sites, as are travel reservation web sites, MySpace,

Facebook, and, of course, iTunes. Ask students why these sites are driven by databases –

what is it about databases that makes the creation and use of these sites more efficient.


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• To what extend should end users be involved in the selection of a database management system and database design?

• What are the consequences of an organization not having an information policy?

QUESTIONS FOR DISCUSSION


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• What are the problems of managing data resources in a traditional file environment and how are they solved by a database management system?

• What are the major capabilities of DBMS and why is a relational DBMS so powerful?

• Define and describe some important database design principles!

• What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

• Why are information policy, data administration and data quality assurance essential for managing the firm´s data resources?

Chapter 6. Databases and Information Management

QUESTIONS FOR REVIEW AND SELF-CONTROL



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• Problem: Explosive growth created information management challenges.

• Solutions: Use MDM to create an enterprise-wide set of data, preventing unnecessary data duplication.

• Master data management (MDM) enables companies like R.R. Donnelley to eliminate outdated, incomplete or incorrectly formatted data.

• Demonstrates IT’s role in successful data management.

• Illustrates digital technology’s role in storing and organizing data.

RR Donnelley Tries to Master Its Data



This slide discusses the chapter opening case study, which describes RR Donnelley’s need to

manage multiple databases and sources of data coming from acquired companies, in a

situation in which the total amount of data was too large to be managed well in a single

source. In an age of non-organic corporate growth where companies grow by acquiring other

companies, business firms quickly become a collection of hundreds of databases, email

systems, personnel systems, accounting systems, and manufacturing systems, none of which

can communicate with each other. This creates a demand for powerful, enterprise wide or

firm wide databases that can bring order to the chaos. Folie 6

• File organization concepts

– Database: Group of related files

– File: Group of records of same type

– Record: Group of related fields

– Field: Group of characters as word(s) or number

• Describes an entity (person, place, thing on which we store information)

• Attribute: Each characteristic, or quality, describing entity

– E.g., Attributes Date or Grade belong to entity COURSE

Organizing Data in a Traditional File Environment



This slide describes a hierarchy of data that is used to store information in a database,

progressing from the database as the top-level holder of information down through the field,

which stores information about an entity’s attribute. This hierarchy is illustrated by the

graphic on the next slide. Ask students to come up with some other entities that might be

found in a university database (Student, Professor, etc.) What attributes (characteristics)

would be important to store in the database?


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THE DATA HIERARCHY

A computer system organizes data in a hierarchy that starts with the bit, which represents either a 0 or a 1. Bits can be grouped to form a byte to represent one character, number, or symbol. Bytes can be grouped to form a field, and related fields can be grouped to form a record. Related records can be collected to form a file, and related files can be organized into a database.

FIGURE 6-1



This graphic illustrates the hierarchy of data found in a database. It shows the student course

file grouped with files on students’ personal histories and financial backgrounds that form the

student database. It illustrates what data is found at each hierarchical level, from the database

level down. Making up the smallest information unit, the field, are smaller units of data,

common to all applications: bits and bytes. A bit stores a single binary digit, 0 or 1, and a byte

stores a group of digits to represent a single character, number, or other symbol.

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• Problems with the traditional file environment (files maintained separately by different departments)– Data redundancy:

• Presence of duplicate data in multiple files– Data inconsistency:

• Same attribute has different values– Program-data dependence:

• When changes in program requires changes to data accessed by program

– Lack of flexibility– Poor security– Lack of data sharing and availability




This slide discusses the problems in data management that occur in a traditional file

environment. In a traditional file environment, different functions in the business (accounting,

finance, HR, etc.) maintained their own separate files and databases.

Ask students to describe further why data redundancy, inconsistency pose problems? What

kinds of problems happen when data is redundant or inconsistence. Ask students to give an

example of program-data dependence. What makes the traditional file environment inflexible?


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TRADITIONAL FILE PROCESSING

The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications. Each application requires a unique data file that is likely to be a subset of the master file. These subsets of the master file lead to data redundancy and inconsistency, processing inflexibility, and wasted storage resources.

FIGURE 6-2



This graphic illustrates a traditional environment, in which different business functions

maintain separate data and applications to store and access that data. Ask students what kinds

of data might be shared between accounting/finance and HR. What about between sales and

marketing and manufacturing? Folie 10

• Database

– Serves many applications by centralizing data and controlling redundant data

• Database management system (DBMS)

– Interfaces between applications and physical data files

– Separates logical and physical views of data

– Solves problems of traditional file environment• Controls redundancy• Eliminates inconsistency

• Uncouples programs and data• Enables organization to centrally manage data and data security

The Database Approach to Data Management



This slide defines and describes databases and DBMS. Ask students to explain what the

difference is between a database and a DBMS. What is the physical view of data? What is the

logical view of data?


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HUMAN RESOURCES DATABASE WITH MULTIPLE VIEWS

A single human resources database provides many different views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll department.

FIGURE 6-3



This graphic illustrates what is meant by providing different logical views of data. The orange

rectangles represent two different views in an HR database, one for reviewing employee

benefits, the other for accessing payroll records. The students can think of the green cylinder

as the physical view, which shows how the data are actually organized and stored on the

physical media. The physical data do not change, but a DBMS can create many different

logical views to suit different needs of users.

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• Relational DBMS– Represent data as two-dimensional tables called relations or

files

– Each table contains data on entity and attributes

• Table: grid of columns and rows– Rows (tuples): Records for different entities

– Fields (columns): Represents attribute for entity

– Key field: Field used to uniquely identify each record

– Primary key: Field in table used for key fields

– Foreign key: Primary key used in second table as look-up field to identify records from original table




This slide introduces the most common type of DBMS in use with PCs, servers, and

mainframes today, the relational database. Ask students why these DBMS are called

relational. Ask students for examples of RDBMS software popular today and if they have

every used any of this software. You can walk students through an example data base that you

have prepared in Access or use one of the exercise data tables found at the end of the chapter.

Identify rows, fields, and primary key.


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RELATIONAL DATABASE TABLES

A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes. Supplier Number is a primary key for the SUPPLIER table and a foreign key for the PART table.

FIGURE 6-4



The graphic on this slide and the next illustrates two tables in a relational DBMS. Ask

students what the entity on this slide and the next are. The key field in the Supplier table is the

Supplier number. What is the purpose of the key field?

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RELATIONAL DATABASE TABLES (cont.)

A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes. Supplier Number is a primary key for the SUPPLIER table and a foreign key for the PART table.

FIGURE 6-4(cont.)



This slide shows the second part of the graphic on the previous slide. Notice that the foreign

key in this table is the primary key in the Suppliers table. What is the purpose of the foreign

key? Can multiple records have the same foreign key?


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• Operations of a Relational DBMS

– Three basic operations used to develop useful sets of data

• SELECT: Creates subset of data of all records that meet stated criteria

• JOIN: Combines relational tables to provide user with more information than available in individual tables

• PROJECT: Creates subset of columns in table, creating tables with only the information specified




This slide describes how information is retrieved from a relational database. These operations

(SELECT, JOIN, PROJECT) are like programming statements and are used by DBMS

developers. For example, looking at the last two slides showing the Supplier and Parts table,

what kind of an operation would you use to show the Parts records along with the appropriate

supplier’s name? Access has wizards for these commands. Folie 16


THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS

The select, join, and project operations enable data from two different tables to be combined and

only selected attributes to be displayed.

FIGURE 6-5



This graphic illustrates the result from combining the select, join, and project operations to

create a subset of data. The SELECT operation retrieves just those parts in the PART table

whose part number is 137 or 150. The JOIN operation uses the foreign key of the Supplier

Number provided by the PART table to locate supplier data from the Supplier Table for just

those records selected in the SELECT operation. Finally, the PROJECT operation limits the

columns to be shown to be simply the part number, part name, supplier number, and supplier

name (orange rectangle).


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• Object-Oriented DBMS (OODBMS)

– Stores data and procedures as objects

– Objects can be graphics, multimedia, Java applets

– Relatively slow compared with relational DBMS for processing large numbers of transactions

– Hybrid object-relational DBMS: Provide capabilities of both OODBMS and relational DBMS

• Databases in the cloud

– Typically less functionality than on-premises DBs

– Amazon Web Services, Microsoft SQL Azure




This slide discusses other types of DBMS. Ask students why one would want to store

multimedia or Java applets in a database? What types of businesses or organizations might

want to use OODBMS.

Another option for businesses is to license database software “from the cloud.” What would

be an advantage to using a database service? (A primary answer is scalability – you only pay

for the exact services you need.)

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• Capabilities of Database Management Systems

– Data definition capability: Specifies structure of database content, used to create tables and define characteristics of fields

– Data dictionary: Automated or manual file storing definitions of data elements and their characteristics

– Data manipulation language: Used to add, change, delete, retrieve data from database • Structured Query Language (SQL)• Microsoft Access user tools for generation SQL

– Many DBMS have report generation capabilities for creating polished reports (Crystal Reports)




This slide discusses the three main capabilities of a DBMS, its data definition capability, the

data dictionary, and a data manipulation language.

Ask students to describe what characteristics of data would be stored by a data dictionary.

(Name, description, size, type, format, other properties of a field. For a large company a data

dictionary might also store characteristics such as usage, ownership, authorization, security,

users.)

Note that the data manipulation language is the tool that requests operations such as SELECT

and JOIN to be performed on data.


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MICROSOFT ACCESS DATA DICTIONARY FEATURES

Microsoft Access has a rudimentary data dictionary capability that displays information about the size, format, and other characteristics of each field in a database. Displayed here is the information maintained in the SUPPLIER table. The small key icon to the left of Supplier_Number indicates that it is a key field.

FIGURE 6-6



This graphic shows the data dictionary capability of Microsoft access. For the field “Supplier

Name” selected in the top pane, definitions can be configured in the General tab in the bottom

pane. These General characteristics are Fields Size, Format, Input Mask, Caption, Default

Value, Validation Rule, Validation Text, Required, Allow Zero Length, Indexed, Unicode

Compression, IME mode, IME Sentence Mode, and Smart Tags. Folie 20


EXAMPLE OF AN SQL QUERY

Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They produce a list with the same results as Figure 6-5.

FIGURE 6-7



This graphic shows an example SQL statement that would be used to retrieve data from a

database. In this case, the SQL statement is retrieving records from the PART table illustrated

on Slide 14 (Figure 6-5) whose Part Number is either 137 or 150.

Ask students to relate what each phrase of this statement is doing. (For example, the statement

says to take the following columns: Part_Number, Part_Name, Supplier Number, Supplier

Name, from the two tables Part and Supplier, when the following two conditions are true …)


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AN ACCESS QUERY

Illustrated here is how the query in Figure 6-7 would be constructed using Microsoft Access query building

tools. It shows the tables, fields, and selection criteria used for the query.

FIGURE 6-8



This graphic illustrates a Microsoft Access query that performs the same operation as the SQL

query in the last slide. The query pane at the bottom shows the fields that are requested

(Fields), the relevant Tables (Table), the fields that will be displayed in the results (Show), and

the criteria limiting the results to Part numbers 137 and 150 (Criteria).

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• Designing Databases– Conceptual (logical) design: Abstract model from business

perspective– Physical design: How database is arranged on direct-access storage

devices

• Design process identifies– Relationships among data elements, redundant database elements– Most efficient way to group data elements to meet business

requirements, needs of application programs

• Normalization– Streamlining complex groupings of data to minimize redundant

data elements and awkward many-to-many relationships




This slide describes activities involved in designing a database. To create an efficient

database, you must know what the relationships are among the various data elements, the

types of data that will be stored, and how the organization will need to manage the data. Note

that the conceptual database design is concerned with how the data elements will be grouped,

what data in what tables will make the most efficient organizations.


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AN UNNORMALIZED RELATION FOR ORDER

An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.

FIGURE 6-9



The graphics on this slide and the next illustrate the process of normalization. Here, one table

lists the relevant data elements for the entity ORDER. These include all of the details about

the order, the part, the supplier.

An order can include more than one part, and it may be that several parts are supplied by the

same supplier. However, using this table, the supplier’s name, and other information might

need to be stored several times on the order list.

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NORMALIZED TABLES CREATED FROM ORDER

An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.

FIGURE 6-10



This graphic shows the normalized tables. The Order table has been broken down into four

smaller, related tables. Notice that the Order table contains only two unique attributes, Order

Number and Order Date. The multiple items ordered are stored using the Line_Item table. The

normalization means that very little data has to be duplicated when creating orders, most of

the information can be retrieved by using keys to the Part and Supplier tables.

It is important to note that relational database systems try to enforce referential integrity rules

to ensure that relationships between coupled tables remain consistent. When one table has a

foreign key that points to another table, you may not add a record to the table with the foreign

key unless there is a corresponding record in the linked table. For example, foreign key

Supplier_Number links the PART table to the SUPPLIER table. Referential integrity means

that a new part can’t be added to the part table without a valid supplier number existing in the

Supplier table. It also means that if a supplier is deleted, any corresponding parts must be

deleted also.


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• Entity-relationship diagram

– Used by database designers to document the data model

– Illustrates relationships between entities

• Distributing databases: Storing database in more than one place

– Partitioned: Separate locations store different parts of database

– Replicated: Central database duplicated in entirety at different locations




This slide continues the discussion about designing databases. One technique database

designers use in modeling the structure of the data is to use an entity-relationship diagram

(illustrated on the next slide). Symbols on the diagram illustrate the types of relationships

between entities. Ask students what different types of relationships there are between entities.

(One-to-one, one-to-many, many-to-many.)

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AN ENTITY-RELATIONSHIP DIAGRAM

This diagram shows the relationships between the entities SUPPLIER, PART, LINE_ITEM, and ORDER that might be used to model the database in Figure 6-10.

FIGURE 6-11



This graphic shows an example of an entity relationship diagram. It shows that one ORDER

can contain many LINE_ITEMs. (A PART can be ordered many times and appear many times

as a line item in a single order.) Each LINE ITEM can contain only one PART. Each PART

can have only one SUPPLIER, but many PARTs can be provided by the same SUPPLIER.


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• Very large databases and systems require special capabilities, tools

– To analyze large quantities of data

– To access data from multiple systems

• Three key techniques

1.Data warehousing

2.Data mining

3.Tools for accessing internal databases through the Web

Using Databases to Improve Business Performance and Decision Making



This slide discusses how very large databases are used to produce valuable information for

firms. The text gives the example of how, by analyzing data from customer credit card

purchases, Louise’s Trattoria, a Los Angeles restaurant chain, learned that quality was

more important than price for most of its customers, who were college educated and liked fine

wine. The chain responded to this information by introducing vegetarian dishes, more seafood

selections, and more expensive wines, raising sales by more than 10 percent.

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• Data warehouse: – Stores current and historical data from many core

operational transaction systems– Consolidates and standardizes information for use across

enterprise, but data cannot be altered– Data warehouse system will provide query, analysis, and

reporting tools

• Data marts: – Subset of data warehouse– Summarized or highly focused portion of firm’s data for

use by specific population of users– Typically focuses on single subject or line of business




This slide discusses the use of data warehouses, and data marts, by firms.

Ask students why having a data warehouse is an advantage for firms hoping to perform

business analyses on the data? Why does there have to be a repository of data that is separate

from the transaction database?


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COMPONENTS OF A DATA WAREHOUSE

The data warehouse extracts current and historical data from multiple operational systems inside the organization. These dataare combined with data from external sources and reorganized into a central database designed for management reporting and analysis. The information directory provides users with information about the data available in the warehouse.

FIGURE 6-12



This graphic illustrates the components of a data warehouse system. It shows that the data

warehouse extracts data from multiple sources, both internal and external, and transforms it as

needed for the data warehouse systems. To extract meaningful information from the data

warehouse, additional tools, such as queries and reports, OLAP, and data mining are required.

The information directory provides users with information about what data is in the

warehouse.

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• Business Intelligence:

– Tools for consolidating, analyzing, and providing access to vast amounts of data to help users make better business decisions

– E.g., Harrah’s Entertainment analyzes customers to develop gambling profiles and identify most profitable customers

– Principle tools include:• Software for database query and reporting• Online analytical processing (OLAP)• Data mining




This slide discusses the role of business intelligence in helping firm’s make better decisions.

The text uses the example of Harrah’s Entertainment:

“For instance, Harrah’s Entertainment, the second-largest gambling company in its industry,

continually analyzes data about its customers gathered when people play its slot machines or

use Harrah’s casinos and hotels. Harrah’s marketing department uses this information to build

a detailed gambling profile, based on a particular customer’s ongoing value to the company.

This information guides management decisions about how to cultivate the most profitable

customers, encourage those customers to spend more, and attract more customers with high

revenue-generating potential. Business intelligence has improved Harrah’s profits so much

that it has become the centerpiece of the firm’s business strategy.”


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• Online analytical processing (OLAP)

– Supports multidimensional data analysis

• Viewing data using multiple dimensions

• Each aspect of information (product, pricing, cost, region, time period) is different dimension

• E.g., how many washers sold in the East in June compared with other regions?

– OLAP enables rapid, online answers to ad hoc queries




This slide discusses online analytical processing, one of the three principle tools for gathering

business intelligence.

Ask students to come up with additional examples of what a multidimensional query might

be.

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MULTIDIMENSIONAL DATA MODEL

The view that is showing is product versus region. If you rotate the cube 90 degrees, the face that will show is product versus actual and projected sales. If you rotate the cube 90 degrees again, you will see region versus actual and projected sales. Other views are possible.

FIGURE 6-13



This graphic illustrates the concept of dimensions as it relates to data. Product is one

dimension. East is a dimension, and projected and actual sales are two more dimensions.

Altogether, we are trying to analyze four dimensions. The business question is: In the Eastern

region, what are the actual and projected sales of our products (nuts, bolts, washers, and

screws)? Sometimes referred to as a “data cube,” the graphic can depict this four dimensional

view of the data. More importantly, when compared to a spread sheet model of the same data,

a graphical data cube is much faster, easier to understand and visualize the relationships.


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• Data mining:– More discovery driven than OLAP

– Finds hidden patterns, relationships in large databases and infers rules to predict future behavior

– E.g., Finding patterns in customer data for one-to-one marketing campaigns or to identify profitable customers.

– Types of information obtainable from data mining• Associations

• Sequences• Classification

• Clustering• Forecasting




This slide discusses another business intelligence tool driven by databases, data mining. Data

mining provides insights into data that cannot be discovered through OLAP, by inferring rules

from patterns in data. Ask students to describe the types of information listed:

•Associations: Occurrences linked to single event

•Sequences: Events linked over time

•Classification: Recognizes patterns that describe group to which item belongs

•Clustering: Similar to classification when no groups have been defined; finds groupings

within data

•Forecasting: Uses series of existing values to forecast what other values will be

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• Predictive analysis – Uses data mining techniques, historical data, and

assumptions about future conditions to predict outcomes of events

– E.g., Probability a customer will respond to an offer

• Text mining– Extracts key elements from large unstructured

data sets (e.g., stored e-mails)




This slide discusses business intelligence techniques related to data mining. Predictive

analysis uses data mining techniques. The text provides the example of the U.S. division of

The Body Shop, which used predictive analysis to identify customers who were more likely to

purchase from catalogs. This helped the company create a more targeted mailing list,

improving their response rate.

While data mining describes analysis of data in databases, there are other types of information

that can be “mined,” such as text mining and Web mining. Ask students what other types of

unstructured textual data sets a company might store, and what kind of useful information

might be extracted from them.


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Read the Interactive Session and discuss the following questions

• What challenges does the increase in unstructured data present for businesses?

• How does text-mining improve decision-making?

• What kinds of companies are most likely to benefit from text mining software? Explain your answer.

• In what ways could text mining potentially lead to the erosion of personal information privacy? Explain.


WHAT CAN BUSINESSES LEARN FROM TEXT MINING?



This slide reviews the case study discussing the technique of text mining. Are there any other

concerns besides privacy issues in the use of text mining? Are customers properly attended to

if, as in the case of Jet Blue, their email messages are merely sifted through for patterns? Did

Jet Blue have any other feasible choice or obligation?

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• Web mining– Discovery and analysis of useful patterns and

information from WWW• E.g., to understand customer behavior, evaluate effectiveness of

Web site, etc.

– Web content mining• Knowledge extracted from content of Web pages

– Web structure mining• E.g., links to and from Web page

– Web usage mining• User interaction data recorded by Web server




This slide continues the exploration of mining stored data for valuable information. In

addition to text mining, there are several ways to mine information on the Web. The text uses

the example of marketers using Google Trends and Google Insights for Search services,

which track the popularity of various words and phrases used in Google search queries, to

learn what people are interested in and what they are interested in buying. What type of Web

mining is this? Why might a marketer be interested in the number of Web pages that link to a

site?


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• Databases and the Web

– Many companies use Web to make some internal databases available to customers or partners

– Typical configuration includes:• Web server• Application server/middleware/CGI scripts• Database server (hosting DBM)

– Advantages of using Web for database access:• Ease of use of browser software• Web interface requires few or no changes to database• Inexpensive to add Web interface to system




This slide looks at how companies utilize the Web to access company databases. Ask students

to describe the flow of information from a company’s databases to the Web page a user is

accessing data on. Why is browser software easy to use? Why is it less expensive to add a

Web interface to a database-driven information system?

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LINKING INTERNAL DATABASES TO THE WEB

Users access an organization’s internal database through the Web using their desktop PCs and Web browser software.

FIGURE 6-14



This graphic illustrates the way data is passed from a database through to a user with a Web

browser. Ask students to describe what types of data transformation occur between the various

appliances, for example, what happens to data as it flows from the database to the the

database server? Answer: data in the database is stored using the data format required by the

database software. This formatted data needs to be transformed into an XML format for

presentation on the Web. The database server makes this transformation and passes it along to

the application server which uses it to populate (or construct) an HTML web page. The Web

page is then sent to the Web server which sends it over the Internet as an HTML web page,

which is finally displayed on the users screen. While each of these software functions is

represented by a separate computer in the illustration, in fact all these servers can and often do

reside on a single computer as software.


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– Firm’s rules, procedures, roles for sharing, managing, standardizing data

– Data administration: • Firm function responsible for specific policies and

procedures to manage data

– Data governance: • Policies and processes for managing availability, usability,

integrity, and security of enterprise data, especially as it relates to government regulations

– Database administration:• Defining, organizing, implementing, maintaining database;

performed by database design and management group

Establishing an information policy

MANAGING DATA RESOURCES

© Pearson

Education 2012

39

This slide discusses the firm’s need for an information policy in order to ensure that firm data

is accurate, reliable, and readily available. Note that while the database administration group

establishes and creates the physical database, the data administration function is responsible

for logical database design and data dictionary development. Why would this function be

better placed with the data administration group? Folie 40

– More than 25% of critical data in Fortune 1000 company databases are inaccurate or incomplete

– Most data quality problems stem from faulty input

– Before new database in place, need to:

• Identify and correct faulty data

• Establish better routines for editing data once database in operation

Ensuring data quality


This slide discusses the importance of data quality. Ask students for personal examples of

what happens when a company’s data is faulty. The text provides an example of 20% of U.S.

mail and commercial package deliveries being returned because of faulty addresses.


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• Data quality audit:

– Structured survey of the accuracy and level of completeness of the data in an information system• Survey samples from data files, or• Survey end users for perceptions of quality

• Data cleansing

– Software to detect and correct data that are incorrect, incomplete, improperly formatted, or redundant

– Enforces consistency among different sets of data from separate information systems

Data quality audit and data cleansing


© Pearson

Education 2012

41

This slide continues the discussion of data quality and examines ways to improve the firm’s

data quality. Ask students what types of data quality problems there are (data that is

incomplete, inaccurate, improperly formatted, redundant). Ask students if user perceptions of

quality are as important as statistical evidence of data quality problems. What is another word

for data cleansing?

Folie 42

Read the Interactive Session and discuss the following questions

• Assess the business impact of credit bureaus’ data quality problems for the credit bureaus, for lenders, for individuals.

• Are any ethical issues raised by credit bureaus’ data quality problems? Explain your answer.

• Analyze the people, organization, and technology factors responsible for credit bureaus’ data quality problems.

• What can be done to solve these problems?

Managing Data Resources

CREDIT BUREAU ERRORS — BIG PEOPLE PROBLEMS



This slide discusses the case study that looks at the consequences of errors made in credit

bureau databases. Ask students if they have ever had any issues with accuracy in public record

keeping. For instance, what kinds of errors do they believe exist in the Social Security or

Internal Revenue Service files? How about the local library? Generally, few people think of

the errors in data bases until they are the victim of such errors. Students should be

encouraged to do a search on “data quality in large data bases” and report on the results.

Documents

Script from slides: Laudon/Laudon MIS, Chapter 06irina.stobbe.net/wiki/images/Laudon_mis12_ppt06_GE_ISt.pdf · 2 Script from slides: Laudon/Laudon MIS, Chapter 06 Folie 3 To what